Rosalind Evans
In Canada, the dreams of a comfortable retirement and stable housing are becoming increasingly elusive across generations. A recent Deloitte Canada report reveals a stark reality: only 14% of near-retirees, those aged 55 to 64, can anticipate a comfortable retirement. This situation is not just a concern for the aging population but also poses significant challenges for the younger generation, who face different but equally daunting financial pressures.
The Plight of Near Retirees and Younger Canadians
Paul Kershaw, the founder of Generation Squeeze, emphasized the dire situation for young Canadians to The West Block’s Mercedes Stephenson. He noted, “For young folks today, hard work doesn’t pay off like it used to.” Kershaw points out the multiple pressures younger generations face: higher education costs, lower-paying jobs post-inflation, skyrocketing housing prices, and increasing rents, all contributing to difficulty saving for retirement.
Concurrently, retirees and near-retirees are not in a much better position. Laura Tamblyn Watts, CEO of CanAge, highlighted their unique challenges: “Boomers are the most indebted generation we’ve ever had.” With historically low interest rates and the rising cost of living, many are considering extending their working years past the conventional retirement age.
Kershaw further added that the fiscal challenges extend to retirement programs. With an increasing life expectancy, there are fewer working-age residents to support retirees, putting additional pressure on younger taxpayers.
The Housing Market and Its Impact
While some retirees enjoy lower housing costs and interest rates, the housing market has not been as kind to millennials and Generation Z. Tamblyn Watts pointed out the difficulties for seniors in downsizing, as most rental places are not senior-friendly. Many seniors are forced to move far from their communities, making accessing services and healthcare more challenging.
Kershaw also highlighted the different experiences in the housing market for Boomers, many of whom have benefitted economically by refinancing homes and purchasing additional properties.
The financial landscape in Canada presents a multi-generational challenge, with both younger and older Canadians facing unique but interconnected hurdles. The issues of housing affordability, retirement security, and increasing debt loads cut across generational lines, demanding comprehensive solutions that address the needs of all Canadians.
